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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Little Joe who wrote (10848)	3/26/2004 1:31:35 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 110194

entire US Economy has become critically dependent upon the bond speculation game - yield carry trade (borrow at 1%, invest at 4%) - leveraged TBond investments - mortgage bonds - mortgage refinances to lower rates - home equity extractions the US Fed will fight to stop higher rates EVEN IF IT MEANS MARCHING INTO A LIQUIDITY TRAP governed by a tight grip on low interest rates i.e. a vise on the testicles a Japanese-like STAGFLATION lasting over a decade is preferable to a recession which gathers momentum downward and becomes something much worse why is is so difficult for American experts to notice that the USA is following step by step the Japanese errors? we are now linking our banking and GSE agency system to overvalued real estate, just like Japan did we are now watching a slowdown in the real economy dictate that interest rates head to zero, just like Japan did / jim